Walmart to raise its starting wage to $11 an hour


For one, a key competitor, Target, in October raised its minimum wage to $11 per hour, with plans to step it up to $15 by 2020.

There are plenty of reasons for companies to reward workers right now.

Job creation is expected to slow in coming months, as it inevitably does late in a recovery, with unemployment now well below the 4.6-percent level central bankers estimate the economy can sustain over the long run. In a tight labor market, companies often need to pay more and provide better benefits in order to fill open positions.

While the tax law will create some financial benefits, Walmart said, it's early talk about other possible spending.

That, in turn, could boost US economic growth overall and strengthen a USA inflation rate whose weakness has bedeviled the Fed for the last five years.

Here's who is passing some of those savings along to employees.

And, the good news is that is not just about wages and bonuses.

He says there maybe more wealth sharing to come.

The combined wage and benefit increases will impact well over one million Walmart employees. "As you know, the President and Congress have approved a lower business tax rate".

Walmart Stores Inc will raise entry-level wages for USA hourly employees to $11 an hour in February as it benefits from last month's major overhaul of the US tax code and competes for low wage workers in a tight labor market.

Other companies have already said that they will give bonuses to their employees because of the new law.

The release said the announcement was "based on the passage of tax reform".

Workers in Washington D.C. and the states of California, Washington and MA, already earn at least $11 an hour. In December, Comcast and AT&T announced plans to give employees a $1,000 bonus following the Trump administration's tax cuts, even as they laid off hundreds of workers.

CEO Greg Carmichael credited tax reform legislation for the move. Retail was among the industries that proponents of the tax overhaul said were likely to benefit. An associate's length of service will determine the size of the bonus.

Walmart said hourly employees at its websites, distribution centers and its Bentonville, Arkansas, headquarters, will benefit from the wage increase.

In the past, Walmart raised starting wages to $9 in 2015 and then $10 for most workers the following year.

In January 2016, Wal-Mart said it would hike its minimum wage for almost all employees to $10 an hour, but it kept its starting wage at $9 an hour for employees in their first six months.

The company said the moves that will affect more than a million hourly workers in the US are tied to recently enacted tax legislation that will save it money.

The retail giant is also expanding maternity and parental leave, providing a one-time cash bonus for eligible associates of up to $1,000 (for employees that have worked at the retailer for 20 years) and assisting associates with adoption expenses, according to the company.